New analysis of online search data has revealed a big jump in the number of people looking at applying for a loan, according to finance experts. It comes in the wake of confirmation from regulator Ofgem that the energy price cap will rise by 80% at the start of October to an average £3,549 per year, up from just under £2,000 currently.
Experts at Loan Corp looked at Google search data for the term 'apply for a loan' and found that searches were up 295% in the UK on August 26, the highest level for more than a year. It said that was treble the average volume for the term. It added that the data also showed that searches for ‘loans' exploded 123% since the announcement was made last Friday.
A spokesperson from Loan Corp said: “This week the British public have been faced with the news that energy prices are set to rise exponentially in the coming months, leaving many looking for alternative means to make ends meet. However, the latest Ofgem announcement has also encouraged a surge of online interest in taking out a loan, highlighting the massive impact the cost of living crisis is having on the public.
"Taking out a loan is a decision that should be made with thorough research and with costs across other sectors rumoured to continue to rise, it will be interesting to see whether these searches translate into loan applications.”
